Introducing a loyalty scheme 'takes careful planning'

Internet merchants need to think about their target demographic before developing a loyalty scheme.

This is the view of Rachel Miller, editor of marketingdonut, a website that provides advice on promoting a small business effectively.

Ms Miller explains that there are a number of ways to boost loyalty, including the use of points-based cards, discounts for regular customers, free gift for multiple purchases or free trial of new products.

No one method is necessarily better than the other - it is important to firmly establish which the customer base will be most responsive to.

Ms Miller went on: "Whatever method you choose, you should focus on specific goals.

"Do you want customers to up their spend? Are you looking for repeat sales or do you want your existing customers to bring in new business?"

According to marketing and loyalty specialists uber, loyalty schemes enable firms to collect highly valuable data about their customers, enabling them to grow their businesses further.